The Benefits of Asset Management and GASB 34

This paper describes the impact of Government Accounting Standard Board Statement No. 34 (GASB 34) on the Missouri Department of Transportation's (MoDOT) management of Missouri's transportation infrastructure. With implementation of GASB 34 for fiscal year 2002, MoDOT began adding infrastructure assets (roads, bridges and right of ways) to its financial statements and accounts for depreciation of assets on its annual and interim reports. Several benefits have already been observed from this data, including a better understanding of the financial statements by functional managers at all levels. The ability to combine the financial picture of the infrastructure with a transportation management system picture of the road and bridge system has given management the tool to look at the current condition of the system and determine how available funds may be used to change or improve it. The financial asset information also provides a quick view of the impact of various funding levels on the level of service the infrastructure will provide over the long term. Infrastructure asset management has also increase relevance of the current value of the system and the value of rights of way in decision making. MoDOT's financial statements are now available on the Internet, allowing the public to see how funds were budgeted and how money was spent.